MANU/IRDA/0029/2015
Authority : Insurance Regulatory and Development Authority
Notification No. : IRDAI/Reg/9/99/2015
Date of Notification : 15.07.2015
Date of Publication : 21.07.2015
Insurance Regulatory and Development Authority of India (Places of Business) Regulations, 2015.
F. No. IRDAI/Reg/9/99/2015.--In exercise of the powers conferred by Section 64VC read with Section 114A (2) (zac) of the Insurance Act, 1938 and Section 18(4) of Life Insurance Corporation Act, 1956 as amended from time to time, the Authority in consultation with the Insurance Advisory Committee, hereby makes the following regulations, namely:-
1. Short title and commencement.-
(i) These regulations shall be called the Insurance Regulatory and Development Authority of India (Places of Business) Regulations, 2015.
(ii) They shall come into force on the date of their publication in the Official Gazette and supersede IRDA (Places of Business)
Regulations; 2013 from such date.
2. Definitions.-
(i) Unless the context otherwise requires, --
(a) "Act" means the Insurance Act, 1938 (4 of 1938)
(b) "Authority" means the Insurance Regulatory and Development Authority of India established under
sub-section (1) of Section 3 of Insurance Regulatory and Development Authority Act, 1999;
(c) "Place of Business" means, a regional office, a zonal office, a divisional office, branch office or any subordinate office or any other office by whatever name called set up within India or a 'representative or a liaison office of Indian Insurers' or a 'Foreign Branch Office of Indian Insurer' set up outside India by the Insurers registered in India;
(d) A "Representative or a Liaison Office" would mean a place of business of Indian Insurers outside India to act as a channel of communication with the Principal place of business or Head Office by whatever name called and entities in India but which does not undertake any commercial or trading or industrial activity, directly or indirectly, and maintains itself out of inward remittances received from abroad through normal banking channel.
(e) "Foreign Branch Office" shall mean a 'branch office' of the Indian Insurers set up outside India which means (a) any establishment described as a branch by the company; or (b) any establishment carrying on either the same or substantially the same activity as that carried on by the Head Office of the company.
(f) "Return" means the returns specified under these regulations;
(ii) Words and expressions used and not defined in these regulations but defined in the Insurance Act, 1938 (4 of 1938), or the Life Insurance Corporation Act, 1956 (31 of 1956) or the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972), or Insurance Regulatory and Development Authority Act, 1999 shall have the meanings respectively assigned to them in those Acts or the rules and regulations made there under, as the case may be.
(3) Subject to these Regulations, every Insurer shall take the prior approval of the Authority before opening any place of business, be it inside India or outside India.
EXPLANATION: These Regulations are not applicable to a branch established in India by a foreign company for doing reinsurance business as defined in Section 2 (9) (d) of the Act.
SECTION-I
NORMS FOR PLACES OF BUSINESS WITHIN INDIA
OPENING OF PLACES OF BUSINESS WITHIN INDIA
(4) All the Insurers shall have in place the Board approved Annual Business Plan for every Financial Year. The Annual Business Plan, in addition to the business plans of the Insurer, shall contain the total number of new places of business proposed to be opened within India not only in the urban centers but also in semi-urban and rural centers.
(5) The Annual Business Plan shall specifically contain the names of places of business proposed to be opened within India, other than those places of business referred at Regulation 7 (ii), during the ensuing Financial Year for which an approval of the Authority is required in accordance with these Regulations.
(6) Every insurer shall submit their respective Board approved Annual Business Plan for the Financial Year April-March before the end of its first Quarter, that is, by June 30th of the same financial year to the Authority.
(7) (i) While considering applications for approving the new places of business proposed to be opened within India in accordance with these Regulations, the Authority considers according aggregate approvals on an annual basis, through a consultative and interactive process.
a. The Authority after considering the places of Business specified in the Annual Business Plan may grant or deny approval for opening a place of business.
b. In the event of denial of approval by the Authority for opening any new places of business, the insurer may seek a review of the decision after three months bringing in valid reasons for reconsideration of the same.
c. Insurers are also permitted to file the Board approved incremental or modified Business Plans during the course of Financial Year for incorporating new places of business or for modifying the places of business proposed in the Annual Business Plan.
ii. Notwithstanding anything contained in Regulation 7(i), all the Insurers that fulfill the following conditions are permitted to open places of business within India without prior approval of the Authority, in the centers or places or locations where the population is less than one lakh as per the latest decennial census classification available and inform the Authority in accordance with Regulation 16 of these Regulations.
a. Minimum Solvency Ratio is as prescribed by the Authority in the preceding Financial Year.
b. Expenses of Management are within the norms prescribed by the Authority in the preceding Financial Year.
(8) Proposals for opening places of business referred at Regulation 7 (i) shall be submitted in
Form-PB 1 of Schedule-1 of these regulations along with the copy of Board approved Annual Business Plan or Modified Annual Business Plan. Statement of Solvency Ratios and details of Expenses of Management for the preceding three Financial Years shall be also furnished.
(9) While submitting the proposals for opening new places of business referred at Regulation 7 (i) and while opening places of business referred at Regulation 7 (ii), all the insurers shall keep in view the long-term nature of insurance business that warrants the continuous presence in the new places of business throughout and shall avoid opening new places of business for shorter durations.
(10) New places of business proposed at Regulation 7 (i) and approved by the Authority shall be opened within a period of one year from the date of approval of the Authority.
a. After the expiry of the time limit, the approval of the Authority stands lapsed.
b. Insurers may incorporate those places of business that could not be opened within the stipulated time prescribed at Regulation 10 in subsequent Annual Business Plans.
(11) All places of business, not being specialized places where back-end operations are proposed with no customer interface, such as Zonal Offices, Regional Offices or Back-Up Centers etc. opened shall at minimum offer policy holders' services such as collection of premiums, proposal deposits or attending policy service requests.
CLOSURE OR RELOCATION OF PLACES OF BUSINESS WITHIN INDIA
(12) (i) Closure or relocation of the places of business within India by the Insurers shall be after due consideration of all the factors, including the possible inconvenience to its policyholders. All the Insurers shall comply with the following while closing or relocating the places of business.
a. Closure of any place of business or relocation of any place of business, shall be approved in advance either by the respective Boards of Insurers or by the Board appointed Policyholders' Protection Committee if the Board of the insurer allows such delegation. Where the approval referred herein is delegated by the Board to the Board appointed subordinate committee, the minutes of the meetings of the subordinate committee shall be placed before the Board in the immediate next meeting.
b. Relocation or change of any place of business, otherwise than within the same city, town or village shall be subject to the prior approval of the Authority and every Insurer shall submit the proposal of such relocation or change to the Authority's consideration in Form PB-3 as and when required.
c. Minimum of two months advance notice on all the proposed relocations or the closures, whether within the same city, town or village or otherwise, shall be given to the policyholders serviced by that place of business along with the information on alternate arrangements being made to provide services to them.
d. The Authority shall be notified two months in advance about the proposal of the closure of place of business.
(ii) The conditions on Closure of places of business and relocation of places of business stipulated at Regulation 12 (i) (a) and (c) are also applicable to the places of business opened by the insurers in accordance to Regulation 7 (ii).
(iii) Where it has come to the notice of the Authority that the decision to open or close or relocate, or the action of opening or closure or relocation; of a place of business is not in accordance with these regulations, the Authority may direct the Insurer to take such action or the Authority may take such action as deemed fit taking in to consideration the circumstances of the case.
RETURNS TO BE FURNISHED TO THE AUTHORITY
(13) Closure of all places of business shall be reported to the Authority as a Return in Form-PB 4 of Schedule-1 of these Regulations, within 15 days of the following month of such closure.
(14) The details of all the relocations (i.e. new address, date of shifting etc.) of places of business shall be reported to the Authority as a Return in Form-PB 5 of Schedule-1 of these Regulations, within 15 days of the following month of such relocation.
(15) A consolidated annual statistics shall be filed as a Return in Form-PB 2 referred at Schedule-1 of these Regulations, within 30 days of the closure of every Financial Year.
(16) Insurers shall submit to the Authority the information on the places of business opened within India along with date of opening of the new place of business as a return in Form-PB 2 within 15 days of the following month in which a place of business is opened.
(17) The Authority may call for any further Statistics and Data related to these Regulations in the manner and format as may be prescribed under these regulations from time to time.
SECTION-II
NORMS FOR PLACES OF BUSINESS OUTSIDE INDIA
(18) An Insurer registered with Insurance Regulatory and Development Authority of India may open a 'Foreign Branch Office' or a 'Representative or a Liaison Office' outside India subject to prior approval granted by the Authority.
(19) Opening of 'a Representative or a Liaison Office' or a 'Foreign Branch Office' by Insurer shall be subject to obtaining the approval or an in-principle clearance from the regulator of the host country where such office is proposed to be opened.
NORMS FOR OPENING A LIAISON OFFICE OR A REPRESENTATIVE OFFICE
(20) Insurers meeting the following norms, desirous of opening a representative or a liaison office outside India shall apply to the Authority in Form FPB-I of Schedule-I.
a) Insurer shall maintain the solvency norms prescribed by the Authority in the preceding Financial Year.
b) Insurer shall have a satisfactory track record on market conduct, regulatory compliances, redress of complaints, etc. and that there are no serious adverse observations on the functioning of the company in the records of the Authority.
ACTIVITIES ALLOWED BY A REPRESENTATIVE OR A LIAISON OFFICE
(21) The representative or a liaison office opened outside India is permitted to carry out the following activities.
a. Through the representative or liaison office, the Insurers can undertake development and promotional activities such as gathering financial, economic and commercial information, educating prospects about advantages of insurance, carrying out promotional activities and promoting company's products amongst the people, customer service activities, identifying prospects living in the host country, acting as a channel of communication with the Corporate Office situated in India, conducting seminars, educating prospects of the various insurance avenues, etc.
b. The permission to continue the functioning of the representative or liaison office by the insurers registered with Authority shall be subject to the terms and conditions as may be stipulated by the Authority from time to time.
c. Liaison with foreign brokers, re-insurers for ceding/acceptance of reinsurances.
d. Activities that support formalizing treaties.
e. Liaison with Surveyors/Risk assessors.
f. Activities that support processing of claims pertaining to risks in a foreign country.
g. Sharing of expertise with respect to the underwriting practices and knowledge.
h. Sharing of business information related to insurance market.
i. Conduct of research or related activity.
j. Other activities incidental to the
above. (to be specified in FPB-I)
(22) The Insurers can arrange to identify the prospects amongst non-resident Indians through the representative or liaison offices but, the acceptance of the proposal and underwriting of risks shall be done only in India. Consequently the policies to be issued shall be designated only in Indian rupees.
(23) The Insurer shall continue to comply with the Foreign Exchange Management Act, 1999 and any other law in force governing the operations of such offices.
(24) The representative or liaison office should not contract any liability outside India.
(25) No agent would be permitted to be engaged by the Representative or Liaison Office and therefore no commission in whatever form shall be paid.
REPORTS TO BE FURNISHED TO THE AUTHORITY BY THE REPRESENTATIVE OFFICE OR A LIAISON OFFICE
(26) The Insurers shall furnish information to the Authority on the business mobilized through the representative or a liaison office, expenditure incurred, details of complaints received and redressed. The reports shall be submitted on an annual basis within a period of 60 days from the end of every Financial Year.
(27) At the close of financial year, an Annual Report giving full details of the activities undertaken, expenditure incurred, etc. should be submitted to the Authority by the Insurer within a period of 60 days from the end of every Financial Year. The Annual Report should also furnish the statement of the expenditure incurred at the Representative Officer Liaison Office outside India together with the Indian operation and specify whether or not the expenses of management are well within the extant limits specified by the Authority.
NORMS FOR OPENING A FOREIGN BRANCH OFFICE
(28) The Insurer desiring to open a foreign branch office to carry on life insurance or general insurance or health insurance or reinsurance business shall make an application to the Authority in Form FPB-2 of Scheduled-I along with the following information:
i) The regulatory architecture along-with the reporting, compliance and other requirements necessary for the establishment and conduct of insurance business of the jurisdiction where a foreign branch office is proposed to be set up.
ii) The expenses involved in establishing such a foreign branch office and the financial burden it will cast on the Insurer.
(29) The Insurer registered with the Authority may be permitted to open a Foreign Branch Office outside India to carry on the following classes of insurance business:
a. Life insurance business
b. General insurance business
c. Health insurance business
d. Reinsurance business
Provided the Insurer shall seek approval of the Authority to open a Foreign Branch Office outside India for which the Insurer has been granted the certificate of registration by the Authority.
ELIGIBILITY CRITERIA OF INSURERS FOR OPENING A FOREIGN BRANCH OFFICE
(30) The Insurers registered with the Authority seeking to set-up foreign branch office outside India shall comply with the following norms:
a. The Insurer should have been in operations for at least 3 years. The number of years of operations shall be reckoned from the date of issuance of R3.
b. The Insurers should have the following financials in the preceding financial year:
|
i) Net worth for Life Insurance Companies
|
-Rs. 500 Crores.
|
|
ii) Net worth for General Insurance Companies and Health Insurance Companies
|
-Rs. 250 Crores.
|
|
iii) Net worth for Reinsurance Companies
|
-Rs. 750 Crores.
|
|
iv) Solvency for life insurance, General insurance, Health insurance and reinsurance companies
|
-As prescribed by the Authority
|
|
v) Profit for life insurance, General Insurance, Health Insurance and reinsurance companies
|
-For 3 years out of the last 5 years
|
c. Where the Insurer is closely held, the Board Resolution in support of the commitment to support the operations of the foreign branch office shall be furnished. Where the same is widely held, a resolution of the shareholders to support the operations of the foreign branch office shall be furnished.
d. The registered Insurer should not suffer from any adverse report of the Authority on its track record of regulatory compliances, for 3 years out of the preceding 5 years from the date of application.
e. Any other requirement that may be sought by the Authority based on the application submitted by the Insurer.
TERMS AND CONDITIONS GOVERNING THE APPROVAL OF THE FOREIGN BRANCH OFFICE
(31) The approval to open a foreign branch office of the Insurers shall be subject to the following terms and conditions:
a) Initial and further augmentation of capital and liabilities of the Foreign Branch Office shall be met out of the Insurer's Shareholders' funds beyond solvency margin requirement.
b) Compliance with Foreign Exchange Management Act, 1999 and any other law in force governing the operations of such offices outside India.
c) Compliance with host country's solvency requirements.
d) The Insurer shall file a copy of the license or the certificate of registration upon receipt of the same from the host country.
e) The Insurer shall immediately report to the Authority any regulatory or supervisory action taken by the host country regulator with full details along with the penalties imposed and other administrative actions, if any, and the remedial steps taken thereafter.
f) Any adverse report or findings shall be communicated to the Authority as soon as it is observed.
g) The Authority may impose any other terms and conditions while granting the approval for opening the foreign branch office outside India.
OPERATIONAL REQUIREMENTS FOR FOREIGN BRANCH OFFICE
(32) The Board of the Insurer shall approve, inter alia, the following operational matters for establishment and conducting business of the foreign branch office in the host country:-
i. Delegation of underwriting authority:
a. Insurers at the beginning of every financial year shall review the underwriting limits delegated to each foreign branch office opened outside India and depending upon the financial net-worth, exposures, business plan, etc have the limits approved by the Board of Directors and filed with the Authority within a period of 60 days from the end of preceding Financial Year.
ii. Underwriting Issues:
a. Insurers are advised to formulate an 'Underwriting Policy' specially formulated for each of their foreign branch offices duly approved by the Board of Directors. Insurers should also consider formulating country specific policies, which need to be approved by their Board. The Insurers shall ensure that the design and rating of products is on sound and prudent underwriting basis. The contingencies insured under the product should be clear and provide transparent cover which is of value to the insured.
b. Comprehensive 'Underwriting Manual' to be followed by the foreign branches in respect to different aspects of its underwriting portfolio, should be prescribed by the Insurer. The Insurer shall have in place the procedures to oversee that the foreign branch office complies with the observance of the manual at all levels. The Insurers should have a mechanism to review the delegated powers of functionaries at the foreign branch offices as regards adequacy of such powers to meet market opportunities and timely business response needs.
iii. Investment Management:
a. The Insurers should formulate an "Investment Policy" to suit the scale, nature and area of operations of the foreign branch offices apart from business considerations and submit the same before its Board of Directors for its approval. In framing such a policy, the issues relating to compliance with host regulator's requirements, liquidity, prudential norms, exposure limits, stop loss limits in securities trading, management of all investment & market risks, management of assets liabilities mismatch, investment audits and investment statistics, etc. shall be addressed.
iv. Risk Management:
a. The Insurers should be compliant to risk management norms to meet the regulatory requirements of the host supervisor/regulator.
v. Reinsurance:
a. The Insurers shall place before the Board of Directors details of reinsurance arrangements proposed for the foreign branch offices to take care of the exposures that arise on account of the underwriting of risks taken in those countries. This should cover details of structure of reinsurance programme covering both proportional and non-proportional arrangements, net retentions, obligatory sessions, if any, classes covered by reinsurance arrangements, extent of catastrophe covers, security of reinsurers, placement of reinsurance cessions, reinsurance recoveries, outstanding loss provisions, etc.
vi. Supervision and Control by the Insurer:
a. The Insurer should review and revise all controls and returns including the system of periodical reviews submitted by the foreign branch offices to their Head Office or Corporate Office, as the case may be, to ensure effective supervision and to monitor their continued viability. The findings of the inspection or audit or scrutiny and compliance reports submitted by the foreign branch offices should be placed before the Audit Committee of the Board of the Insurer at half-yearly intervals.
b. The Insurer should also have in place the systems and checks to ensure that delegated powers are exercised prudently and judiciously by the authorised officials and has no adverse fallout on the parent office.
c. The Insurer should also review the delegated powers of the functionaries at the foreign branch offices as regards adequacy of such powers to meet local policyholder's expectations.
vii. Actuarial Issues:-
a. The Insurer may utilize the services of its Appointed Actuary for overseeing the valuation of liabilities, investment performance, solvency margin ratio, design and pricing of insurance products, creation of reserves for outstanding claims and any other matter which the Board of Directors deem fit.
viii. Claims Settlement Issues:
a. The Insurer should have a comprehensive "Claims Manual" which prescribes the manner in which the claims in respect of its foreign branch office shall be processed, documentation, delegation of authority, policyholders servicing, grievance redressal, etc.
(33) The Board of Directors of Insurer is responsible for monitoring the functioning of the operations, financial statements and business performance of the foreign branch office at regular intervals and shall immediately report to the Authority any events or developments which can impair the functioning of the foreign branch office.
(34) REPORTING REQUIREMENTS TO THE AUTHORITY
The Insurer shall file the following reports of the foreign branches to the Authority.-
i. Financial reporting
a. Audited Annual Report giving full details of activities undertaken including premium underwritten, claims incurred, expenses of management, commission, investment income, profits, technical reserves, outstanding recoveries, etc in the form specified in Authority's concerned accounting regulations as modified from time to time within the time lines specified therein.
b. Investment of funds, returns on investment, NPAs, etc in the formats specified by the Authority's concerned investment regulations as modified from time to time within the time lines specified therein.
c. Report of the Appointed Actuary on the valuation of assets, liabilities and solvency margin of the foreign branch office.
ii. Business Reporting
a. On quarterly basis, the Insurer shall report the business mobilized through the branch office, expenses incurred, claims performance, ageing of claims, details of complaints received and redressed, service standards, distribution channels utilized, etc. in the formats specified by the Authority.
b. Reinsurance arrangements
iii. Others
a. The Insurer shall immediately report to the Authority any regulatory or supervisory action taken by the host country regulator with full details and the penalty, any administrative action, if any imposed and the remedial steps taken.
b. The Authority may call for any other return on the foreign branch office operations as deemed necessary.
(35) The Insurer shall immediately inform the Authority any adverse findings on the foreign branch office operations that are to its notice during the course of its monitoring or during the course of the review of the reports referred under these Regulations.
SOURCES OF MEETING THE CAPITAL REQUIREMENTS OF THE FOREIGN BRANCH OFFICE SET UP BY INDIAN INSURERS
(36) (i) The Insurer shall have in place appropriate arrangements to ensure that the policyholder's liabilities that arise out of foreign operations are adequately ring-fenced in order to protect the Indian policyholder.
(ii) Wherever the Insurer's foreign branch office operations result or likely results into a loss, then additional capital requirements for meeting the losses or for meeting the capital or other regulatory requirements, shall be contributed out of the Shareholders' funds beyond solvency margin requirement of the Insurer and no contributions from the policyholders' funds shall be utilized to meet the capital requirement of the foreign branch office.
FURTHER POWERS OF THE AUTHORITY
(37) (i) The Authority reserves the right to call, inspect or investigate any document, record or communication pertaining to the foreign branch office set up by the Insurer. The Insurer shall furnish such requirements within the timelines specified therein.
(ii) Notwithstanding the above, where the Authority is of the opinion that the operations of a foreign branch office are not in the interests of the Insurer, the Authority reserves the right to direct the Insurer to close the said foreign operations or to completely divest its stake in the said foreign branch office after giving an adequate opportunity of being heard to the Insurer.
RETURNS TO BE FURNISHED TO THE AUTHORITY
(38) The capital infused into the foreign Branch Office of the Insurer as at the end of the preceding Financial Year and the projected capital infusions for the following Financial Year shall be reported to the Authority in the first quarter of every financial year that is before June 30th of the Financial Year.
(i) Notwithstanding the above provisions, the capital infused into the foreign branch office set up outside India at any time and the funds of any nature transferred into the operations of the foreign branch office set up outside India for any purposes at any time shall be reported to the Authority within 15 days of such transfer.
(39) The Authority may also reserve the right to consider prescribing in future such other returns on the foreign branch office's operations that may be filed by the Insurer with the Authority within such time lines as may be specified therein.
POWER TO ISSUE CLARIFICATIONS
(40) In order to remove difficulties in respect of the application or interpretation of any of the provisions of these regulations, the Chairperson of the Authority may issue appropriate clarifications or guidelines as and when required.
SCHEDULE-I
Form
PB-1/Form PB-2
APPLICATION FORM FOR NEW OFFICE OPENING/Form for intimation of Opening of a Place of Business
Insurer who seeks to open new office will have to fill up the form, same form to be filed in case of new office opening which requires prior approval of the Authority or intimation to the Authority.
1. Name of Insurer:
Type of filing:
Reason for Reconsideration of the application (if applicable)
2. Proposed Office Location Details
Address**:____
State/,UT*:___
District*:___
City/Town/Village*:____
Pin Code**:
(*Mandatory while filing application for opening a place of business and **Mandatory while intimating after opening of the place of business)
3(a) Classification of Location
(i) Location: Metro/Urban/Semi-Urban
(ii) Classification: Tier I/II/III/IV/V/VI
(iii) Type of Office:
(iv) Classification as per Census (Year):
(v) Population___ as per census (Year)_____
3(b) Solvency Margin & Expenses of Management
(i) Expenses of Management for three years (as on)
(ii) Solvency Margin for three years (As on)
3(c) Other Details:
(i) Distinctive Code:
(ii) Date of office Opening:
4. Application Submission Details
i. Date of submission of application (if applicable)
ii. How many previously approved offices are pending for opening with the insurer?
iii. Whether the insurer complied with the prescribed ceiling on expenses of management during the previous financial year ?
iv. Whether the insurer complied with prescribed solvency norms during the previous financial year?
v. Proposed total capital expenditure involved in opening of the new office
vi. Whether the office would be connected to the insurer's IT network
vii. Whether issue of online premium receipts is planned for the proposed offices
viii. If connectivity is not provided, what alternative servicing arrangements have been made and what is the distance of the proposed office from the nearest supporting office.
ix. Date of approval for opening of offices by the Board of Directors
x. Functions proposed to be handled at the proposed office (Please mention yes/no)
a. Sales Support
b. Premium Collection
c. New Business
d. Policy Servicing
e. Investment
f. Corporate Functions
g. Others (to Specify)
h. Back end office with no customer interface:
5. Expected Business
|
Year
|
No. of New Policies
|
Premium income from new business
|
|
Year 1
|
|
|
|
Year 2
|
|
|
|
Year 3
|
|
|
6. Proposed Manpower
|
Designation
|
No. of Employees
|
|
|
|
|
|
|
Enclosures:
1. Copy of Board approved Annual Business Plan
2. Statement of Solvency Ratio for 3 FYs
3. Statement of Expenses of Management for 3 FYs
Signature of CEO
OR
Signature of Chief Compliance Officer
# For the purpose of these forms Metropolitan Centre is a place where population is 10 lacs and above and Urban Center with a population of 1 lac to 9,99,999, semi Urban from 10,000 to 99,999 population figures to be reckoned as per the latest available decennial census data.
Form PB-3
REQUEST FOR APPROVAL FOR RELOCATION OF OFFICES
Request for approval for relocation of offices
(other than for relocation within the same city, town or village (for all type of cities)
Pin Code
State
District
City
Distinctive Code
1. Name of Insurer:
2(a) Location details of existing office
i. Address line 1
ii. Address line 2
iii. Address Line 3
iv. State/UT
v. District
vi. City/Town/Village
vii. Pin Code
2(b) Classification of Location
i. Location: Metro/Urban/Semi-Urban
ii. Classification: Tier I/II/III/IV/V/VI
iii. Type of Office
iv. Classification as per census (year)
v. Date of office opening
vi. Population___ as per census (Year)_____
3(a). Details of new office location
i. Address line 1
ii. Address line 2
iii. Address Line 3
iv. State/UT
v. District
vi. City/Town/Village
vi. Pin Code
3(b) Classification of Location
i. Location: Metro/Urban/Semi-Urban
ii. Classification: Tier I/II/III/IV/V/VI
iii Type of Office:
iv Classification as per census (year)
4. Other details
i. Proposed date of Relocation
ii. Date of approval by the Board of Directors for relocating of office
iii. Notified to the policyholders on relocation? (Two months prior notice) Yes/No
If No Reasons: ____________
If Yes:
Date of Notification:
Mode of Notification:
Enclosures:
1. Copy of the Board Resolution
Signed by
CEO (or)
Chief Compliance Officer
Form-PB-4
INTIMATION FOR CLOSURE OF OFFICES
Intimation of Closure of offices (all cities)
(Insurers are required to notify the closure of office at least 2 months in advance to the Authority) Pin Code
State
District
City
Distinctive Code
1. Name of Insurer:
2(a). Location details of existing office
i. Address line 1
ii. Address line 2
iii. Address Line 3
iv. State/UT
v. District
vi. City/Town/Village
vii. Pin Code
2(b) Classification of Location
i. Location (Metro/Urban/Semi-Urban)
ii. Classification (Tier
I to Tier VI)
iii. Type of Office
iv. Classification as per census
v. Date of office opening
3. Other details
i. Unique Id Number, if any
ii Date of closure
iii Date of approval by the Board of Directors/PPC for closing of office
iv. Notified to the policyholders on closure (two months prior notice) If No, specify the reasons:
If Yes,
Date of Notification:
Mode of Notification:
v. Notified to the Authority on____
|
Enclosures:
1. Copy of the Board Resolution (Mandatory)
Signed by
CEO (or)
Chief Compliance Officer
|
|
FORM-PB-5
(INTIMATION AFTER RELOCATION)
Intimation of relocated office
Type of Intimation
Distinctive Code
1. Name of Insurer:
2(a). Location details of existing office
i. Address line 1
ii. Address line 2
iii. Address Line 3
iv. State/UT
v. District
vi. City/Town/Village
vii. Pin Code
2(b) Classification of Location
i. Location: Metro/Urban/Semi Urban
ii. Classification: Tier I/II/III/IV/V/VI
iii. Type of Office
iv. Classification as per census (Year)
v. Date of office opening
3. Other details
Actual Date of Relocation:
Remarks, if any
Enclosures:
1. Copy of the Board Resolution
Signature of CEO/CCO
FORM-FPB-1
The Chairman
Insurance Regulatory and Development Authority of India,
3rd Floor, Parisrama Bhavan,
Basheer Bagh,
Hyderabad 500004
Re: Application for opening of a representative/liaison office outside India by Insurer registered with IRDAI
|
S. No.
|
Particulars
|
Details
|
|
A
|
General Information
|
|
|
1
|
Full Name of the Insurance Company
|
|
|
2
|
Place and Date of Incorporation
|
|
|
3
|
Address of Head Office
|
|
|
4
|
Registration No.
|
|
|
B
|
Ownership & Management
|
|
|
1
|
List of names and addresses of directors and their qualifications and principal business
|
|
|
i)
|
Name & Address
|
|
|
ii)
|
Qualifications
|
|
|
iii)
|
Principal Business
|
|
|
2
|
Name, Address and contact details of Chief Executive Officer or Principal Officer of the proposed representative or liaison office
|
|
|
3
|
Name, designation, address and contact details of Key Person at Head Quarters who will be responsible for overseeing the company's representative/liaison office outside India
|
|
|
C
|
Details of proposed representative/liaison office outside India
|
|
|
1
|
Location
|
|
|
2
|
Purpose of opening the representative/liaison office
|
|
|
3
|
Activities proposed to be undertaken (Refer Regulation 21)
|
|
|
4
|
Estimated annual expenses and sources and manner of meeting these expenses
|
|
|
5
|
Whether approval of the Government of India (in respect of LIC/PSU's only) and Board of Directors has been taken. If so, submit certified copies of necessary approvals.
|
|
|
6
|
Copies of Government/Regulatory approval or in-principle clearance from host country
|
|
|
D
|
Financial Position of the Insurance Company in the preceding three Financial Years
|
|
|
1
|
Details of capital:
(i) Paid-up capital:
(ii) Free Reserves as per last audited Balance Sheet
|
|
|
2
|
Highlights of financial position of the Insurer based on last three years financial statements
|
|
|
3
|
Solvency Margin Ratio
|
|
|
4
|
Management Expense Ratio for last 3 years
|
|
|
5
|
Combined Ratio for last 3 years
|
|
|
6
|
Has Government of India or any Regulatory body taken any action or imposed any penalty, fine, etc on the Insurer. If so, the details thereof.
|
|
|
E
|
Supervisory Arrangements
|
|
|
1
|
Details of supervisory arrangements to which the Insurer will be subject to in the jurisdiction where it is proposing to open a representative/liaison office.
|
|
|
F
|
Documents to be enclosed
|
|
|
1
|
Copies of Memorandum and Articles of Association
|
|
|
2
|
Last 3 years financial statements
|
|
|
3
|
Certified copies of approval of the Government of India (in respect of HC/PSU's only) and Board of Directors
|
|
|
4
|
Copies of Government/Regulatory approval from host country or in-principle clearance received from them, if any
|
|
|
5
|
Copy of research undertaken, if any, to arrive at a decision for opening a representative/liaison office in the host country
|
|
We hereby declare that:
(i) The particulars given above are true and correct to the best of our knowledge and belief;
(ii) We shall confine our activities outside India to the fields indicated in column C.3 above;
(iii) We will abide by the terms and conditions that may be stipulated by Insurance Regulatory and Development Authority of India, if approval is given.
(Signature of Chief Executive Officer Or Chief Compliance Officer of the Applicant Company)
Name:
Designation:
Place:
Date:
Form FPB-2
The Chairman
Insurance Regulatory and Development Authority of India 3rd Floor, Parisrama Bhavan
Basheer Bagh
Hyderabad 500004
Re: Application for opening of a foreign branch office of Insurers registered with IRDAI
|
Sl. No.
|
Particulars
|
Details
|
|
A.
|
General Information
|
|
|
1.
|
Full Name of the Insurer
|
|
|
2.
|
Place and Date of Incorporation
|
|
|
3.
|
Address of Corporate Office
|
|
|
4.
|
Registration No.
|
|
|
B
|
Ownership & Management (as on date of application)
|
|
|
1.
|
List of names and addresses of Directors and their qualifications and principal business
|
|
|
|
(i) Name & Address
|
|
|
|
(ii) Qualifications
|
|
|
|
(iii) Principal Business
|
|
|
2.
|
Name, Address and contact details of Chief Executive Officer
|
|
|
3.
|
Details of shareholders holding more than 5% of the share capital
|
|
|
C
|
Financial Position of the Insurer (as on date of application)
|
|
|
1.
|
Details of capital:
(i) Paid-up capital:
(ii) Free Reserves as per last audited Balance Sheet
|
|
|
2.
|
Highlights of financial position of the Insurer based on last three years financial statements
|
|
|
3.
|
Net worth for the preceding 3 Financial Years
|
|
|
4.
|
Profits for the preceding 5 years
|
|
|
5.
|
Solvency Margin Ratio of the preceding 3 Financial Years
|
|
|
6.
|
Management Expense Ratio for preceding 3 Financial Years
|
|
|
7.
|
Combined Ratio for preceding 3 Financial Years
|
|
|
8.
|
Shareholders Fund beyond solvency margin requirement for the preceding 3 Financial Years
|
|
|
9.
|
Has Government of India or any Regulatory body taken any action or imposed any penalty, fine, etc on the Insurer, during the preceding 3 Financial Years. If so, the details thereof.
|
|
|
D.
|
Details of proposed office outside India
|
|
|
1.
|
Location
|
|
|
2.
|
Name, Address and contact details of Chief Executive Officer of the proposed branch office outside India
|
|
|
3.
|
Purpose of opening the office outside India
|
|
|
4.
|
Class of insurance business proposed to be underwritten
|
|
|
5.
|
Submit detailed Financial Projections-A description of the model used for financial projections should be provided, based on assumptions, for a period of 5 years, for each year from the beginning. These should set out the following:
(i) Size of sales force.
(ii) Amount of sales.
(iii) Size of sales support and administrative staff.
(iv) Premium income.
(v) Investment income.
(vi) Commissions and other sales related expenses.
(vii) Expenses of administration.
(viii) Income tax and other taxes.
(ix) Statutory reserves.
(x) Required solvency margins.
(xi) Profit and loss accounts and balance sheets.
(xii) First year and renewal expense ratios.
(xiii) Capital needs
(xiv) Break-even periods and the Return on Capital.
(xv) Shareholder dividends: Indian and Foreign.
(xvi) Policyholder surpluses and bonus declarations
This section should also discuss the manner in which the future capital needs will be met.
|
|
|
6.
|
Sensitivity Analysis-The analysis set out in S. No. 5 above will be based on a base scenario and a few alternate scenarios. Sensitivity analysis based on "Optimistic" and "Pessimistic" assumptions should also be included. These will relate to assumptions such as:
(i) Size of sales force.
(ii) Volume of sales.
(iii) Average size of sale.
(iv) Levels of mortality/morbidity, policy terminations for life/health.
(v) Administrative expenses (including inflation).
(vi) Future investment conditions.
(vii) A discussion on the manner in which the outcome of the pessimistic scenarios will be handled should be included.
(viii) Estimated annual expenses and sources and manner of meeting these expenses
|
|
|
7.
|
Whether approval of the Government of India (in respect of LIC/PSU's only) and Board of Directors has been taken. If so, please submit certified copies of the approvals.
|
|
|
8.
|
Copies of Government/Regulatory approval or in-principle clearance from host country, if any.
|
|
|
E
|
Supervisory Arrangements
|
|
|
1.
|
Details of supervisory arrangements to which the Insurer is subject to in the jurisdiction where it is proposing to open an office outside India.
|
|
|
2.
|
Nature of the Branch Office (how it is incorporated in the host country)
|
|
|
3.
|
Proposed name of the Branch Office in host country
|
|
|
4.
|
Place and Date of Incorporation
|
|
|
5.
|
Address of Office of FBO
|
|
|
6.
|
Registration No.
|
|
|
F
|
Ownership & Management of the proposed foreign branch office
|
|
1.
|
List of names and addresses of Key persons and their qualifications and principal business of the proposed foreign branch office
|
|
|
2.
|
Name & Address
|
|
|
3.
|
Qualifications
|
|
|
4.
|
Principal Business
|
|
|
5.
|
Name, Address and contact details of Chief Executive Officer of the foreign Branch Office
|
|
|
6.
|
Name, designation, address and contact details of Key Person at Indian Corporate Office who is responsible for overseeing the foreign branch office
|
|
|
G
|
Documents to be enclosed
|
|
|
1.
|
Copies of Memorandum and Articles of Association
|
|
|
2.
|
Preceding 3 financial years financial statements
|
|
|
3.
|
Certified copies of approval of the Government of India (in respect of LIC/PSU's only) and Board of Directors
|
|
|
4.
|
Copies of Government/Regulatory approval from host country or in-principle clearance received from them
|
|
|
5.
|
Copy of research undertaken, if any, to arrive at a decision of opening of branch office in a the host country
|
|
|
6.
|
Any other documents, which are deemed relevant and substantiate the opening of office outside India
|
|
We hereby declare that:
(i) The particulars given above are true and correct to the best of our knowledge and belief;
(ii) We shall confine our activities outside India to the fields indicated at Sl. No. D(4) above;
(iii) We will abide by the terms and conditions that may be stipulated by Insurance Regulatory and Development Authority of India, if approval is given.
(Signature of Chief Executive Officer Or Chief Compliance Officer of the Applicant Company)
Name:
Designation:
Place:
Date:
Certification
I, the undersigned, solemnly declare that the facts given in this application form on behalf of the Applicant Company are true and that the projections and estimations are based on reasonable assumptions.
(Signature of Chief Executive Officer Or Chief Compliance Officer of the Applicant Company)
Name:
Designation:
Place:
Date:
T. S. VIJAYAN, Chairman
[ADVT. III/4/Exty./161/15(141)]